Cortland County company to lay off 100 workers because New York won't guarantee pay on state contracts

Dick Blume / The Post-StandardSuit-Kote workers pave Broad Road on Onondaga Hill in 2008. The highway construction company was forced to withdraw about 100 job offers because the state won't guarantee that contractors will be paid for work on state roads.

Suit-Kote, a highway construction company that’s one of Cortland County’s largest employers, told hundreds of workers this week to report for duty Monday, fixing New York’s roads, highways and bridges.

Wednesday, company officials called about 100 back and told them to stay home.

Suit-Kote officials said they had to withdraw the job offers because the state is no longer guaranteeing contractors will be paid for work on state roads.

Gov. David Paterson announced Tuesday that payments for all state capital projects not paid for by federal stimulus money will be delayed or canceled until lawmakers pass a budget or approve emergency funding for that purpose. That could result in work stoppages on hundreds of projects statewide worth nearly $1 billion.

Delayed projects mean drivers will have to contend with road closures, detours and congestion for longer periods of time.

“We won’t be doing any state work unless we can be assured we are going to be paid,” said Suit-Kote spokesman Brian Renna, who noted that government contracts make up about 90 percent of the company’s work.

Construction companies across the state are taking a similar stance, according to Steve Stallmer, of the Associated General Contractors of New York State.

“My members are telling me if they’re not going to get paid they may close down projects and furlough workers,” Stallmer said. “If this is not resolved when the Legislature reconvenes next week, this will be widespread.”

Renna said this is the first year since former Gov. Mario Cuomo was in office that an emergency budget extender bill didn’t include funding for transportation projects.

“The money is there, and the governor is making a political decision to try to use the construction industry as a wedge with the Legislature to get them back to the negotiating table or to get the cuts he wants,” Stallmer said. “It’s unfair to the construction industry and to the traveling public.”

Budget spokeswoman Jessica Bassett said the state is in a severe cash-flow crisis and is operating on a bare-bones emergency budget.

“Until we have an enacted budget, DOT and other agencies won’t be able to spend state dollars for existing contracts,” Bassett said.

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Road work
The state Department of Transportation on Wednesday said these Central New York projects may be affected by Gov. David Paterson’s announcement that the state cannot guarantee payment for contractors on current and upcoming road construction projects: